Any self-respecting bank today issues credit cards to its customers. Their main feature is an interest-free or grace period for using the institution’s money, or grace-period.
What, in fact, is the advantage?
A grace period is a time period during which money borrowed from a bank can be returned without interest. The main condition is to do this in full and before the end of the agreed period.
It would seem that a service that is absolutely unprofitable for the bank is a grace period for lending. In fact, today there are a lot of optional people. They pay interest and fines, providing banks with a profit.
The responsible borrower, having wisely weighed all the pros and cons, will easily use the money of the bank, and will force his funds to work for himself (having drawn up, for example, a deposit at a good interest).
Calculation Features
Most consumers of banking services do not always delve into the issue and understand the grace period system. In fact, it is not difficult. Today, banks divide the grace period into two parts. The first is about 30 days and allows you to make transactions on credit. The second, about 20-25 days, is intended to repay the loan. As a result, it turns out that the grace period can last up to 55 days (it depends on the day of purchase).
There are only two lending options offered by banks: the period of privilege begins either from the moment of registration of the purchase, or from the date known by the bank.
If the privilege starts from the date fixed by the bank
If there is a card with a grace period of this type, the term usually starts counting from the first day of the month or from the moment the card is activated, and it lasts an average of 30 days. Moreover, all transactions are summed up, and before the end of the announced period, they must be credited to the bank account.
Such a concession is considered unstable, since, for example, a purchase made closer to the end of the month has a shorter interest - free loan term . But then the number of payments from month to month is the same. For consumers who make purchases often, this calculation option is most convenient. It is enough to remember the beginning and end of the grace period and the date of making the monthly payment. Typically, banks, in accordance with the terms of the grace period, send a monthly electronic statement to the client or an SMS message indicating the amount of the debt and the time it should be paid to the bank.
If the privilege starts from the moment of transaction
In this case, it would seem that everything is simpler. The period of interest-free repayment of the bank’s money starts from the day of purchase and lasts an average of 30 days (depending on the particular institution). But if the cardholder with a grace period makes many small purchases, there is a chance that he will simply get confused in both the amount of return and the dates.
Probable problems
They can occur if the client at least once forgot to pay off the debt or make the necessary monthly contribution. In this case, the bank will accrue interest on both the remaining loan term and the preferential term. To pay off debt, you can use one of three methods:
- Deposit the amount agreed by the bank in any of its branches.
- Put cash at any creditor bank account at any ATM.
- Make a cashless transfer in any convenient terminal.
Here you need to take into account one caveat. Only money deposited in the issuing bank (first option) will be credited to the account on the same day. Payments from other banks can go up to three business days.
There is also such a condition of the institution that issued the credit card, as a mandatory payment. This monthly payment is stipulated in the contract, and usually does not exceed 10% of the loan amount. Ignoring these payments, even if the borrower pays interest, threatens with penalties and blacklisting.
The best credit cards of banks with a grace period
The bulk of credit cards works according to this system: in the first thirty days, purchases are made with borrowed funds, which must be returned in the next twenty days. But there are credit organizations that provide a grace period of up to two hundred days. The main condition that the client must comply with is a monthly payment. It is not more than 5% of the total debt.
Free loans from 60 to 200 days
Maximum offers on the card MasterCard or Visa Bank Avangard. It can be obtained by a client who did not take a loan or who first applied. The monthly installment on such a card is 10%.
If, after the seventh month from the date of issuing the card, the client does not pay the next installment, the bank charges interest for all 200 days of the grace period. In this case, the rate will increase from month to month.
The credit limit varies from 10 to 150 thousand rubles and is renewable.
A card with a grace period (Promsvyazbank) for 145 days is no less profitable. Issue it only for the first time applying and not using credit cards up to this point. The interest-free period begins with the month of issue of the card. Therefore, there will be more opportunities if you get it at the very beginning of the month. The credit limit at Promsvyazbank is 600 thousand rubles. For non-compliant bank conditions, the interest rate is 34.9%.
The already interesting Gemini card from Alfa Bank is already interesting. You can use the money of this institution free of charge for a hundred days. The card is amazing in that it has two working sides. One is credit, the second is debit. Naturally, the details are different, including the pin code. The credit limit for Gemini is up to 300 thousand rubles, and interest, if you have to pay it, is 18.99%.
Interesting credit conditions are provided by banks (with a grace period of 60 days on the card) Uralsib and Rosbank. The latter, in addition to the grace period, makes it possible to reserve travel services without reference to any air carrier. The credit limit varies from 300 thousand rubles to a million, the interest rate - 24.9%.
In addition to the free first year of service, Uralsib offers discounts at Lukoil gas stations.
The grace period of a Yar-Bank credit card lasts a standard 55 days. With a relatively small percentage (17.5%), you can get up to a million rubles.
One of the favorite credit cards for gamers and admirers of electronic products is Kanobu Bank Tinkoff. Credit Systems. " It has a renewable amount of 700 thousand rubles. But this is not the main thing. When paying with a card on the Kanobu website, the user has a 10% discount, as, by the way, in partner stores that sell electronics. Interest beyond the grace period is 23.9. And cash withdraw from this credit card is relatively inexpensive.
Cash on credit card? You are welcome!
As you know, credit cards are not intended for cash. But in the struggle for the client, banks began to make various concessions on the issue of money from such cards. All the nuances are prescribed in the contract. You need to carefully familiarize yourself with them. Here is some of them:
- The size of the commission may be higher at a “foreign” ATM.
- Commission for the withdrawal of own funds is also a frequent phenomenon.
- If a paid withdrawal option is connected to a credit card, then there is most likely no commission, but there is no grace period either.
- Withdrawal limits may be limited by day or month. Yes, you can cash out somewhere the entire limit, and somewhere - a small part.
Top Debit Card Cash Offers
Today, more and more consumers of banking services order credit cards for cash. For such clients, unique conditions began to appear on debit cards. Consider them below.
Top banks
One of the leaders in this direction is Alfa Bank. There the card is issued in two days according to two documents. Equipped with all modern technologies that give a guarantee of safety and facilitate use.
This institution has one of the best Internet banking (Alfa-click), free SMS alerts, good cashback for purchases that can be made without contact, a significant grace period (cash, by the way, is withdrawn without commission). In partner banks (they are indicated in the contract), there is also a free withdrawal of money. In other banks, the commission will be 1%, but not less than 150 rubles. Credit limit - 750 thousand per month.
Raiffeisen Bank with a Cash Card is not far behind. It is drawn up according to one document. The interest rate is 34%. If at the conclusion of the contract to provide a certificate of income, the rate is reduced to 29%. Withdrawing money from the card is free not only at Raiffeisen Bank and Rosbank. One “but” - after cashing out, the grace period ends, and interest is calculated on everything.
Soyuz debit card from Soyuz Bank is issued free of charge, and no annual service fee is charged. Credit limit - ranging from 5,000 to 300,000 rubles. It is important to consider that Soyuz Bank does not provide a grace period. Interest is accrued on equity. It is drawn up according to the passport, but only if the client participates in the bank's salary project and his income for the previous three months was more than 10,000 rubles (net). The monthly installment is 10% of the principal debt with interest, and must be credited no later than the fifth day.
Cash is withdrawn without commission, but not more than 180,000 rubles per day, and not more than 450,000 per month.
"Just a credit card" from CityBank is a unique banking product. Cash can be withdrawn anywhere in the world for free. For annual maintenance, a commission is also not charged. Interest is in the middle category - from 13.9 to 32.9%. The grace period - 50 days - does not apply to cash withdrawals. Note to customers: reissuing a card at the office costs 750 rubles, and over the Internet - for free!
The salary program of "RosEvroBank" allows you to withdraw money for any credit card. Issue it only to the participant of this program. The annual cost of a card depends on its specification. But the interest rate and credit limit are considered by the bank individually for each client.
What does Sberbank offer?
The grace period in this credit institution is up to 50 days. However, in order not to fall under interest, you must carefully study this proposal.
The main thing to consider: the grace period starts from the date of application for the card issue, and not from the time of purchase, as in most banks. This date will be indicated on the envelope with the pin code. It starts with a free fifty-day use of the bank, twenty of which are considered a payment period. During this period, you need to make payments for the reporting month. Thus, the preferential 50 days are:
- 30 days reporting period, at the end of which a payment document is generated (it lists all purchases and the total amount),
- a billing period that lasts 20 days.
The scheme for using a Sberbank credit card is approximately the following:
- Application for card issuance and its activation.
- Use of bank money within 30 days, without going beyond the limit.
- Obtaining a reporting document for purchases made.
- Studying the date of payment and its amount.
- Repayment of another debt.
It is believed that if you withdraw cash from a credit card and return it on time, you won’t have to return interest. It is a myth. Sberbank provides a grace period only for cashless payments. As soon as the money is cashed (they will take a certain commission for this), interest will accrue on the entire debt. And this is 24%.
If it is not possible to repay all the necessary amount, the interest is charged at the lowest rate, and the client only needs to make the minimum payments. At Sberbank, they make up 5%. If these contributions are not in the account, according to the contract, fines will be charged and the interest rate will skyrocket to 38%.
Post scriptum
Money from a Sberbank credit card to another can be transferred in any convenient way via Internet banking, terminal, mobile bank. The main thing here is to know that the transferred amount is equal to cash withdrawal with all the ensuing consequences.
It is possible to minimize interest when withdrawing funds if you make a transfer to one of the electronic wallets through a terminal or the Internet, and withdraw them to a debit card. In this case, the commission will be 1.75%.